Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — PotlatchDeltic — Q1 2019 Earnings Presentation
22 slides from Rayonier Inc. Reit's earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Earnings
Q1 2019 Earnings April 30, 2019
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the U.S. housing market; strong
Slide 3: Key Highlights – Q1 2019
Key Highlights – Q1 2019 Performance Strategy Capital Allocation (1) Total Adjusted EBITDDA: Strong lumber fundamentals Share Repurchases: • $28.3 million • Housing demand supported by • 278,947 shares at $36.39/share • Total Adjusted EBITDDA margin of 16% demographics • $10.2 million • Restricted C
Slide 4: Q1 2019 Consolidated Results
Q1 2019 Consolidated Results Total Adjusted EBITDDA – Q4 2018 to Q1 2019 Variance ($ in millions) $36.4 $3.6 ($2.9) $2.8 $28.3 ($9.8) ($1.8) Q4 2018 Resource Wood Products Real Estate Corporate Eliminations Q1 2019 Key Consolidated Highlights: Total Adjusted EBITDDA decreased $8.1 million from Q4 20
Slide 5: Q1 2019 Resource Results
Q1 2019 Resource Results Resource Adjusted EBITDDA – Q4 2018 to Q1 2019 Variance ($ in millions) $29.8 $1.1 $26.9 ($1.5) ($2.4) ($0.1) Q4 2018 Sales Price & Mix Production Volume Other Revenue Forest Mgmt/Roads Q1 2019 Variance Key Resource Highlights: Resource Adjusted EBITDDA decreased $2.9 millio
Slide 6: Q1 2019 Resource Results – Northern Region
Q1 2019 Resource Results Northern Region Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $140 600 $45 $42 60 $120 $40 49 Volumes: Tons (thousands) 500 Volumes: Tons (thousands) 50 374 $35 $100 $87 400 $30 40 Price: $/Ton Price: $/Ton $80 300 $25 30 $60 $20 200 $15 20 $40 100
Slide 7: Q1 2019 Resource Results – Southern Region
Q1 2019 Resource Results Southern Region Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $50 600 $35 $32 600 $45 500 $30 500 Volumes: Tons (thousands) $40 Volumes: Tons (thousands) 413 $25 373 400 400 Price: $/Ton Price: $/Ton $30 $20 300 300 $20 $15 200 200 $10 $10 100 $5 10
Slide 8: Q1 2019 Wood Products Results
Q1 2019 Wood Products Results Wood Products Adjusted EBITDDA – Q4 2018 to Q1 2019 Variance ($ in millions) $2.5 $3.1 $0.4 $1.6 $7.2 $3.6 ($4.0) Q4 2018 Price Manufacturing Cost Log Cost Residuals & Panels Other Q1 2019 Lumber Key Wood Products Highlights: Wood Products Adjusted EBITDDA increased $3.
Slide 9: Q1 2019 Wood Products Results
Q1 2019 Wood Products Results Lumber Pricing and Shipments Wood Products Adjusted EBITDDA $550 400 $60 ($ in millions) $500 350 $50 238 300 Shipments (MMBF) $450 Price: $/ MBF $380 250 $40 $400 200 $30 $350 150 $20 $300 100 $10 $7 $250 50 $200 - $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Q1 2019 Real Estate Results
Q1 2019 Real Estate Results Real Estate Adjusted EBITDDA – Q4 2018 to Q1 2019 Variance ($ in millions) $12.6 ($2.1) $0.5 $2.7 ($8.0) ($0.3) Q4 2018 Rural Sales Development Sales SG&A Other, net Q1 2019 Key Real Estate Highlights: Real Estate Adjusted EBITDDA decreased $9.9 million from Q4 2018 level
Slide 11: Q1 2019 Real Estate Results
Q1 2019 Real Estate Results Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price $3,500 100 13,500 $140,000 Legacy Deltic 90 $3,000 Average Price: $ / Acre 11,000 $120,000 80 $96,129 Average Price: $ / Lot Residential Lots Sold $2,500 $1,801 70 $100,000 60 Acres Sold
Slide 12: Favorable Capital Structure
Favorable Capital Structure $250 Debt Maturities ($ in millions) $200 $176 $150 $150 $100 $100 $100 $50 $40 $46 $40 $43 $40 $28 $0 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Unaudited, $ in millions March 31, 2019 Key Highlights: (1) Refinanced $150 million January 2019, lowering inte
Slide 13: Q2 2019 Outlook
Q2 2019 Outlook RESOURCE Harvest volume 1.2 ̶ 1.3 million tons Geographic harvest ~ 70% of volume in South Sawlog mix North: ~ 90% sawlogs South: just over 50% sawlogs Sawlog pricing North: lumber indexed South: flat WOOD PRODUCTS Lumber shipments 280 - 295 MMBF Lumber prices REAL ESTATE Rural Devel
Slide 14: Appendix
4\PotlatchDeltic. Appendix
Slide 15: Total Company Summary
Total Company Summary (Dollars in millions except per-share amounts - unaudited 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Operating income: Resource $ 29.0 $ 29.1 $ 46.0 $ 17.5 $ 121.6 $ 16.6 Wood Products 25.6 45.5 40.6 (3.3) 108.4 2.2 Real Estate 4.3 9.3 3.1 6.2 22.9 0.9 Corporate(1) (30.0) (12.5) (10.1) (9.
Slide 16: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA (in millions – unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Resource Northern Resource Operating Income $ 26.2 $ 26.0 $ 39.6 $ 13.6 $ 105.4 $ 11.7 Depreciation, depletion and amortization 2.1 1.9 2.3 2.0 8.3 2.0 Northern Resource Adjusted EBIT
Slide 17: Non-GAAP Reconciliation: Total Adjusted EBITDDA and CAD
Non-GAAP Reconciliation: Total Adjusted EBITDDA and Cash Available for Distribution (in millions – unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Total Adjusted EBITDDA Net Income (GAAP) $ 14.6 $ 46.1 $ 60.4 $ 1.8 $ 122.9 $ 6.6 Interest expense, net 5.6 9.4 10.1 10.1 35.2 5.4 Income taxes 5.7 12.0 5.4 (3
Slide 18: Statistics: Resource and Wood Products
Statistics: Resource and Wood Products (unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Resource Fee Volumes (tons) Northern Region Sawlog 448,782 377,636 500,138 387,598 1,714,154 373,865 Pulpwood 45,428 31,389 37,953 31,978 146,749 48,643 Stumpage 5,836 4,222 3,210 135 13,403 7,376 Total 500,046 413,247
Slide 19: Statistics: Real Estate
Statistics: Real Estate (unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Real Estate Rural Acres Sold HBU Development 1,796 1,133 1,136 1,326 5,391 759 Rural Real Estate 3,461 2,280 2,024 1,160 8,925 1,143 Non-Strategic Timberlands 887 8,158 — 80 9,125 440 6,144 11,571 3,160 2,566 23,441 2,342 Revenues by
Slide 20: 2018 Share Count Changes
2018 Share Count Changes (unaudited) In Q1 2018, 22 million shares were issued to complete Deltic Timber merger In November of 2018, 4.8 million shares were issued as part of the $222 million special distribution Thousands 2018 Total Common shares outstanding Q1 Q2 Q3 Q4 2018 Beginning of the period
Slide 21: Definitions
Definitions Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, provision (benefit) for income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, gai
Slide 22: Jerald W. Richards, Vice President and Chief Financial Officer
Jerald W. Richards Vice President and Chief Financial Officer 509-835-1521 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com